2016 (4) TMI 443

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....e Respondent Rep by: Ms Surabhi Sinha, Adv ORDER Per B. Ravichandran Revenue is in appeal against order dated 27.04.2006 of Commissioner (Appeals)-II, Raipur. The respondents are engaged in the manufacture of Sponge Iron. Char/dolochar produced in the process are captively consumed for generation of electricity. Most of the electricity so produced are not used in appellant's factory. ....

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.... Electricity Co. Ltd. - 2003 (158) ELT 3 (SC). The facts of the present case are different, in as much as the coal here is used as a raw material, not as a fuel. Though coal is burnt in the process in partakes in the process of manufacture of sponge iron. The char/dolochar is not merely a burnt residue but a product emerging from raw materials which is different and hence a excisable commodity. ....

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.... was not captively used, the exemption under notification no.67/95 claimed for char/dolochar was sought to be denied. We notice that the electricity generated in the respondent unit is not solely using char/dolochar. Out of three boilers, 2 are working on heat recovery of waste gases coming out of the sponge iron kiln for production of steam, the third one is a combustion type in which solid fuels....